The purpose and objective of this work was to review all taxes in the Republic of Croatia that were directly or indirectly related to carrying out the business of art, so that all taxpayers in the business would find it easier to fulfil their tax obligations and also to claim any rights that they have.
The need for this work was also the result of comprehensive changes in the tax system that have taken place since Croatian independence. The tax reforms carried out have been marked by the passing of new laws about taxing income and profits, as well as changes in taxing the sale of goods and services, which is to say the introduction of value added tax.
The most important taxes that artists are faced with in their work are income tax and value added tax, and in practice most attention is devoted to these forms of taxation. A review of other taxes is presented in a concise way so that the users should be able to become acquainted with the laws in which their taxation position is the same as that of other taxpayers. Apart from the tax regulations, certain customs regulations related to the work of an artist have been explained; these relate to the import and export of materials, works, artistic equipment, instruments and so on. The work of a large number of artists is increasingly related to areas beyond country borders.
The project has also presented the tax rates (income tax and value added tax) and the attitude of certain countries to artistic occupations, with respect to financing, sponsorship and donations. Most countries provide for certain solutions connected with a reduction of the tax base, recognition of costs, the application of lower rates of taxation, and tax breaks for those who assist art in any way at all.
The recommendations and conclusions from the project should first of all be useful to all those who carry out any kind of artistic work, but also to professionals who are engaged in taxation matters. At the same time, the project could serve as a basis for the solution of unclarities and inconsistencies noted in the regulations themselves, so that difficulties in the application of them might be avoided to the greatest possible extent for both the taxpayers and for the employees of the tax administration.